Philippine startups will receive government assistance this year through the Department of Science and Technology (DOST) as the country looks to kickstart an economic recovery. Support will come in several forms, including loans and access to business incubators or research and development partners.
“Startups are important as they will generate employment. We have programs to assist the MSMEs (micro, small, medium enterprises), communities, especially the marginalized, even for LGUs (local governments) planning for development in their provinces,” DOST Secretary Fortunato de la Peña told the Philippine News Agency.
He estimates that 781 Philippine startups will receive DOST assistance in some form this year. The majority of help will be provided through DOST’s Small Enterprise Technology Upgrading Program (SETUP). The program provides a loan that encourages companies to adopt technological innovations which improve their products and operations.
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Additionally, DOST will encourage Philippine startups to undergo incubation at one of the 48 technology business incubators or hubs in the country. Those firms outside of industries covered by incubators can partner with institutions for research and development via the Collaborative Research and Development to Leverage Philippine Economy (CRADLE). A total of 38 CRADLE programs were approved in 2020 with a budget of PHP178 million allocated for these.
Additionally, work will continue on supporting Overseas Foreign Workers (OFWs) who wish to create a startup in the Philippines. Last year, the government launched Innovation for Filipinos Working Distantly from the Philippines (iFWD PH) which was well received.
The special program provides returning OFWs with a no-interest loan along with training. According to de la Peña, 119 people enrolled in the first phase of iFWD PH with nearly half of that group either having started phase two or moved on to materializing their business.
